Answer:
2.) $520
3.) less
Step-by-step explanation:
I'm going to assume that the interst is compoudning and is convertable once a year
The compound interest formula for interest compounding only once a year is as follows
[tex]AV=PV(1+i)^n[/tex]
plug in the numbers and get
[tex]500(1+.04)^{1}=500*1.04=520[/tex]
3.) If the interest rate is lower at the credit union he would obvioulsy be paying less (assuming that this interest rate is convertable annually as well)
